Mets agree to sell minority interest in team

Published 11:35 am, Thursday, May 26, 2011

NEW YORK (AP) -- The cash-strapped owners of the New York Mets agreed to sell a minority share of the team to hedge fund manager David Einhorn for $200 million.

The announcement Thursday would allow owners Fred and Jeff Wilpon and Saul Katz to retain control of the team. The influx of money would help pay debts and cover operating expenses. It is not clear how much of the team Einhorn will own.

Wilpon told Sports Illustrated this week the team is "bleeding cash" and could lose up to $70 million this year. He also told the magazine the club might slash payroll next year.

In addition, the current owners are being sued by the trustee in the Bernard Madoff case.

Enter Einhorn, the president of the private investment firm Greenlight Capital, Inc.

"Having an opportunity to become part of the Mets franchise is exciting beyond my wildest childhood dreams," he said in a statement released by the Mets. "I look forward to partnering with the Wilpon and Katz families through the good seasons, the tough seasons and especially the championship seasons."

The Mets said Einhorn will be a "preferred partner" and have a "nonoperating investment" in the team. The club said the deal is subject to the "negotiation of a mutually acceptable definitive agreement" and is expected to be completed next month. Major League Baseball must give its approval.

Recently, Forbes magazine estimated the value of the Mets had dropped 13 percent in one year to $747 million -- and that was before the team's projected losses this season.